A Project Has an Initial Investment of 100 If the Cash Flows Are Perpetuities and the Cost of Come

Multiple Choice

A project has an initial investment of 100. You have come up with the following estimates of the projects with cash flows.
$$\begin{array} { l r c c } &\text { Pessimistic NPV } & \text { Most Likely } & \text { Optimistic } \\\text { Revenues } & 15 & 20 & 25 \\\text { Costs } & - 10 & - 8 & - 5\end{array}$$
If the cash flows are perpetuities and the cost of capital is 10%. What does a sensitivity analysis of NPV (no taxes) show?

A) -50, 20, +100
B) -100, -50, +80
C) -50, +50, +70
D) None of the above